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The Caton Team believes, in order to be successful in the San Fransisco Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the upmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.

Month: March 2015

Hello! Thank you for reading my first installment of REAL EATS, the beat on where to eat. I thought I’d combine my love of good food with my passion for Real Estate and blog about local restaurants. I mean, what better information for a Realtor to know than where the best restaurants are and if you can walk to them from your house! I plan on sharing my favorite spots up and down the San Francisco Peninsula and beyond. I hope you have a chance to enjoy the amazing food our communities have to offer.

So for my first entry – I chose one close to my heart and soul for a couple of reasons. One – it’s silly – but the building was my former Karate DoJo. Oh the memories of testing for belts in the same space I am now sipping a beer and enjoying a fine sandwich – is a riot. I love watching communities grow, how buildings change and repurposed. Anyway – let’s get to the food!

When I first discovered that a restaurant in my favorite town – San Carlos – was featured on Diners-Drive-Ins-and-Dives – I was so excited. When I saw the episode, my husband and I couldn’t wait to head down there. Let me tell you – we were not disappointed. On our first visit, hubby got the Ruben and I got the Toasted Slaw #19. Oh boy! The moment that plate hit the table, it smelled so good, I knew I was in for a treat. The bread was perfectly toasted, the sauerkraut on the Reuben and the Slaw on mine were well seasoned. Good cheese, great flavor… But the meat – the House Made pastrami – the lacquer – was spectacular! I am drooling just thinking about it. Needless to say – we’ve returned several times and enjoyed bringing new people to appreciate their treats. I even tried the grilled Cambozola Sandwich. Good Lord, the gooey blue cheese with caramelized onions, matched with the apple and lemon-tomato marmalade. Heaven. Delicious Heaven. Oh it comes with a salad too. And a side of guilt for eating something so decadent – hahah – but worth every bite!

I managed to snap two photos in my numerous visits. Seriously – the food is that good I forgot I want to take a picture; the camera doesn’t stand a change against my hunger. Oh, they also have a plethora of awesome beers from around the world. So truly a treat for every single one of your taste buds.

The Caton Team strives to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here. Contact us at your convenience – we are but a call, text or click away!

Earlier this year, President Obama announced that HUD will lower its FHA mortgage insurance premiums by 50 basis points, from 1.35 percent to .85 percent, effective Jan. 26. This move will make it easier for hundreds of thousands of home buyers to get a mortgage and provide greater access to homeownership for historically underserved groups and credit-worthy families. On a $300,000 loan, that could mean a savings of $1,500 a year.

The annual mortgage insurance premium for most FHA transactions has been reduced. What does this mean for you?

· Monthly savings: borrowers can purchase a home with the lowest possible total monthly mortgage payment. For those with an LTV greater than 95% or high credit scores, FHA financing will provide a lower total monthly mortgage payment than conventional loans with private mortgage insurance.

· Repeat homebuyers are eligible for high LTV financing: conventional loans with private mortgage insurance restrict LTVs greater than 95% to first-time homebuyers. Alternatively, FHA financing is available for first-time homebuyers and repeat principal-residence purchasers with LTVs up to 96.5%.

· Qualify more buyers : A lower total monthly mortgage payment results in a lower DTI ratio, potentially allowing more borrowers to qualify for mortgage financing.

· Afford more home: You may be able to purchase a more expensive property without increasing their total monthly mortgage payment.

· Refinance savings: Clients who have recently purchased a home with FHA financing may be eligible to refinance their mortgage and lower their total monthly mortgage payment for immediate savings.

California Homebuyer’s Rejoice as Mortgage Rates Continue to Drop in February

Though many experts once predicted mortgage rates around 5% at the beginning of 2015, these forecasts have once again been defied this month. Thanks to concerns over slowing foreign economies, among other economic factors, mortgage rates have continued to drop – an encouraging change for buyers and the newest indication that business will continue to blossom in 2015.

According to the latest report from Freddie Mac, the average fixed rate on a 30-year loan dropped to 3.58% in the first week of February, marking the first time since May 23, 2013 that the average rate for a 30-year fixed loan reached below 3.6%.

Similarly, the fixed rate on a 15-year loan dropped to 2.92% – down from 2.98% the week before. Likewise, the starting rate on a hybrid loan – those that become adjustable after five years – dropped the same week.

While mortgage rates have reached their lowest point in over 20 months, it should be noted that these rates are far below their historic levels. In February of 1982, for example, rates were as high as 17.6% for a 30-year fixed loan, according to Freddie Mac. In February 2007 – the beginning of the subprime mortgage meltdown – the average rate on a 30-year fixed loan was at 6.29%

According to Len Keifer, Freddie Mac’s Chief Economist, buyers or those trying to refinance their home need not worry about rates rapidly increasing, as recent economic reports have indicated the economy is still not strong enough to trigger inflation.

“Pending home sales were weaker than expected,” he said. “Moreover, real [economic] growth for the fourth quarter was 2.6% and the Institute for Supply Management reported slower growth in manufacturing last month, both missing market consensus forecasts.”

Though I am posting this article in March – I am sitting here reading it in February and I have to say I more than agree. The holiday season is always a slow time of the market – however this January I was surprised at the volume of buyers out there house hunting and in droves! Our listings all received multiples offers and sold for well over list price. The open houses in January were packed and they have’t slowed down through February either. I don’t expect demand to slow down in the Bay Area through the Spring. So if you are thinking about buying Real Estate this year – give us a call or an email so we can educate you on what it takes to buy on the San Francisco Peninsula. If you are thinking of selling your home this year – call us ASAP to be ready to take advantage of the best time to come on the market. – Sabrina 650-568-5522 /sabrina_caton@yahoo.com

After suffering a setback in December, American attitudes toward the housing market recovered last month, with more consumers saying it is a good time to get off the sidelines.

Sixty-seven percent of American adults responding to Fannie Mae’sJanuary National Housing Survey said now is a good time to buy a home, the company reported Monday, while 44 percent said now is a good time to sell. Both figures are up from December, when positive responses were at 64 percent and 40 percent, respectively.

Doug Duncan, SVP and chief economist at Fannie Mae, said the country’s current economic momentum played a role in January’s more upbeat views of the housing market.

“Consumers are as positive about their personal finances at the start of 2015 as they have been since we launched the National Housing Survey in 2010, and this optimism seems to be spilling over into housing market attitudes,” Duncan said. “Consumers are more optimistic about the environment both for buying and for selling a home today, and the share who plan to own on their next move has jumped back up, reversing a three-month trend toward renting.”

The share of respondents in Fannie Mae’s survey who said their household income is “significantly higher” than it was a year ago climbed 4 percentage points to a survey high of 29 percent, the company reported. Looking ahead, 48 percent said they expect their finances to improve in the next year, also a survey high.

Overall, 44 percent of Americans said they believe the economy is on the right track, an increase of 3 percentage points and only five points less than those saying the economy is headed the wrong way (49 percent).

That optimism spurred 66 percent of those surveyed to say they would buy a home if they had to move, a jump from 61 percent at the end of 2014. The share of those who would rent, meanwhile, slipped after three months of gains, falling to 29 percent.

“Overall, these are good signs to start off 2015 and are consistent with our expectation that strengthening employment and economic activity will boost the speed of the housing recovery,” Duncan said.

Attorney General Eric Holder has given U.S. attorneys across the country 90 days to judge whether or not they want to bring cases against specific individuals for their alleged roles in 2008’s mortgage crisis, according to reports.

Speaking at a National Press Club event on Tuesday, Holder said federal prosecutors who have previously brought charges against firms for selling toxic mortgage-backed securities will be given an opportunity to investigate individual employees for potential charges, Reuters reported.

Holder reportedly told the assembled press that prosecutors will have 90 days to report back on “whether they think they are going to successfully bring criminal or civil cases against those individuals.”

The announcement marks a policy shift for Holder, whose department has taken criticism from consumers and politicians with its failure to go after bank executives and some institutions following the crash. In early 2013, he famously remarked at a Senate committee hearing that the size of some institutions makes it difficult to prosecute them without impacting the economy.

He walked those comments back later, saying, “If we find a bank or financial institution that has done something wrong, if we can prove it beyond a reasonable doubt, those cases will be brought.”

The timing of the attorney general’s announcement is also bound to raise questions: With Holder on his way out, the ultimate decision to prosecute would be made by his replacement, who right now is slated to be Loretta Lynch.

“Once again, it appears as though the Administration is looking to bully the mortgage banks, or should I say bankers, instead of restoring faith and confidence into the mortgage banking system,” said Ed Delgado, President and CEO of the Five Star Institute. “Despite hundreds of billions paid in fines and penalties, it’s not enough. Today’s announcement from U.S. Attorney General Eric Holder to seek action against mortgage bankers, just as he is about to leave office, is nothing more than one last attempt to impugn and embarrass an already beleaguered industry.

“Now names and people’s lives have to be destroyed, but to what end? To satisfy what agenda? It begs the question: will a single family benefit from this action? Will a foreclosure be reversed? Or has the matter of seeking justice become politicized to the point, where unless a mortgage executives name and face appear on the cover of the New York Times, charged with some criminal act, there simply will be no measure of satisfaction in the eyes of the government. It’s a shame that taxpayer money is being spent to further a cause without a means to an end.”

A message left with the department’s Office of Public Affairs was not immediately returned.

WASHINGTON, DC – Consumer optimism toward the housing market gained some momentum last month following a dip in December, likely getting a boost from their increasingly positive financial outlook, according to results from Fannie Mae’s January 2015 National Housing Survey™. The share of respondents who said their household income is significantly higher than it was 12 months ago rose 4 percentage points to 29 percent, and the share expecting their personal financial situation to improve over the next year increased to 48 percent – both all-time survey highs. After dropping in December, the share who said it is a good time to buy a home increased 3 percentage points to 67 percent, and the share saying they would buy rather than rent if they were to move jumped 5 percentage points to 66 percent, marking the first increase since September 2014.

“Consumers are as positive about their personal finances at the start of 2015 as they have been since we launched the National Housing Survey in 2010, and this optimism seems to be spilling over into housing market attitudes,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Consumers are more optimistic about the environment both for buying and for selling a home today, and the share who plan to own on their next move has jumped back up, reversing a three-month trend toward renting. These results are in line with lender optimism about future growth in their mortgage origination business, as shown in our Mortgage Lender Sentiment Survey™. Overall, these are good signs to start off 2015 and are consistent with our expectation that strengthening employment and economic activity will boost the speed of the housing recovery.”

SURVEY HIGHLIGHTS

Homeownership and Renting

The average 12-month home price change expectation rose to 2.5 percent.

The share of respondents who say home prices will go up in the next 12 months rose to 49 percent. The share who say home prices will go down remained constant at 8 percent.

The share of respondents who say mortgage rates will go up in the next 12 months decreased by 3 percentage points to 45 percent.

Those who say it is a good time to buy a house increased to 67 percent. Those who say it is a good time to sell increased to 44 percent—tying an all-time survey high.

The percentage of respondents who expect home rental prices to go up in the next 12 months fell slightly to 52 percent.

The share of respondents who think it would be easy to get a home mortgage today fell to 50 percent, while the share saying it would be difficult to get a mortgage rose 3 percentage points to 47 percent.

The share who say they would buy if they were going to move rose to 66 percent, while the share who would rent decreased 5 percentage points to 29 percent.

The Economy and Household Finances

The share of respondents who say the economy is on the right track increased by 3 percentage points to 44 percent.

The percentage of respondents who expect their personal financial situation to get better over the next 12 months increased to 48 percent—an all-time survey high.

The share of respondents who say their household income is significantly higher than it was 12 months ago rose 4 percentage points to 29 percent—an all-time survey high.

The share of respondents who say their household expenses are significantly higher than they were 12 months increased to 35 percent.

The most detailed consumer attitudinal survey of its kind, Fannie Mae’s National Housing Survey™ polled 1,000 Americans via live telephone interview to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). To reflect the growing share of households with a cell phone but no landline, the National Housing Survey has increased its cell phone dialing rate to 60 percent as of October 2014. For more information, please see the Technical Notes. Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future.

For detailed findings from the January 2015 survey, as well as technical notes on survey methodology and questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey page on fanniemae.com. Also available on the site are in-depth topic analyses, which provide a detailed assessment of combined data results from three monthly studies. The January 2015 National Housing Survey was conducted between January 1, 2015 and January 22, 2015. Most of the data collection occurred during the first two weeks of this period. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae’s Economic & Strategic Research (ESR) Group included in these materials should not be construed as indicating Fannie Mae’s business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR Group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the ESR Group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.